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Economic Incentives for Firms to Implement Enhanced Food Safety Controls: Case of the Canadian Red Meat and Poultry Processing Sector
Authors:Udith Krishantha Jayasinghe-Mudalige  Spencer Henson
Institution:Udith Krishantha Jayasinghe-Mudalige is senior lecturer in the Department of Agribusiness Management, Wayamba University of Sri Lanka.;Spencer Henson is associate professor in the Department of Agricultural Economics and Business, University of Guelph.
Abstract:This study assesses quantitatively the economic incentives for firms to adopt food safety controls and the potential impact of a number of firm- and market-specific characteristics on this behavior, focusing on the red meat and poultry processing sector in Canada. The results suggest that market-based (private) incentives have a greater impact on the food safety responsiveness of firms in this sector than government regulatory actions. This creates challenges for regulators in defining policy instruments that promote greater levels of food safety control in food processing sectors rather than constraining firms from taking initiatives that exceed regulatory requirements.
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